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At a regular meeting of the Federal Reserve Board held in the office of the Board on Wednesday, December 16, at 3.00 p. m. PRZSENT: Mr. Hamlin Li'. Warburg 1::r. Delano Mr. Harding 1.1r. Williams Mr. Miller The Governor of the Board presided and Mr. H. 2. Willis acted as secretary to the meeting. The minutes of the meetings of Friday, Saturday and Monday were read and approved. After the reading of the minutes of the meeting held on Friday afternoon at three o'clock the Board directed the making of a special minute indicating that the approval of the settlement plan for use between Federal reserve banks recommended by Governor Strong of New York, as Chairman of the meeting of Governors, was to be regarded as merely an approval of the proposal to experiment and to devise a method of working out existing settlement difficulties in the best available manner. Mr. Harding read a communication regarding a prOposed plan of carrying out the clearing provisions of the 448 Federal Res .ve A.ct in the Atlanta district. A letter with reference to the reimbursement of actual travelling expenses to persons who had been invited to 7;asl-Angton by the Federal Reserve Board was examined, and on motion, referred to the 3omptro11er of the Treasury for approval. On motion, it was voted to make the regular meeting at 3:00 p. m. on Wednesday of each week the official time for consideration of ap, lications for changes in rates of discount, such action Lio ta,ce effect after January 1st. The Jecretary of the Board was directed to notify the reserve banks of the action. On motion, the em,)loyment of a stenographer by petitive com- bidding, to report hearings in the appeals cases was authorized. A memorandum presented by the Secretary of the Board with reference to methods of filing letters was directed corded and distributed to the members. 41 draft of a proposed letter to Federal Reserve Agents relative to methods of correspondence • with the Board, was approved. On motion, it was voted to prepare reports for the 'Secretary of the Treasury with reference to Federal Reserve notes in the Board's own division of statistics and accounts 449 and the ,peretary of the Board was directed to confer with Assistant Secretary of the Treasury Lalburn on the subject. On motion, it was voted that Mr. Delano be de-outed to advise Assistant Jac:rotary :alburn inforally that tne Board would be clad to see Federal reserve notes treated on a basis of equality with lawful money when received at the redemption division of the Treasury. A draft of a letter to Hon. . C. Adamson with reference to certain complaints regarding Federal reserve bans was approved and ordered transmitted. Letters from Federal Reserve Agents Bosaort„ Ingle and Jay, applying for Federal reserve notes in varyi36 amounts, were presented by the Secretary. draft of a pre- liminary letter to Federal Res,)rva Agent Bosworth was ap2roled and the applications for notes were referred to r. Delano, ° Chair= of Standing 3dmmittee 47. An inquiry of Federal Reserve Agent Curtiss with 3ubscri2 reference to the power of member banks to pay their 00 to stoc.:c in the Federal Reserve Bank of Boston at once, wa-il motion, referred to the Counsel for an opinion. A letter from Senator Simmons transmitting cortaill correspondence complaining of the action of Federal aeserve 4J banks with reference to rates of discount, was referred to Mr. Harding with power to reply. Similar action was taken.with reference to a letter from Er. R. G. Rhett. A report by Er. Harding recommending the establishment of agricultural credit files was approved and the Secretary was directed to send suitable letters to Federal Reserve Agents. On motion, it was voted that after the receipt of the li3t of iversons who have passed the examination given by the Civil Jervioe Commission on behalf of the Board to applicants desirous of securing appointments on the Board's staff, no selection be made without reference to the Board. Er. Miller laid before the Board a letter frol:. 2edera1 Reserve Agent Miller relative to t.ie question of sending special examiners to look into the affairs of certain member banks in the Kansas City district. On motion, the subject was referred to the Committee on Audit and Examination, Mr. 7illiams, Chairman. The Question whether ten 12er..cont limitation of the Act is to p.p.) y to the one million capital set apart by the National City Bank of New York for their branch at Rio de Janeiro, or to the thirty million capital of the Bank of the 451 • United States, was ordered referred to Counsel that he might indicate to the Board the course followed by the Jomptroller in this regard where branch banks are established by National banks in the United States. Telegrams received from Federal reserve banks relative to ratesof discount were read to the Board and tl,e facts inserted in tie minutes. was ordered that a telegram be sent to the Federal Reserve Bank at Boston authorizing the change in with its rate to five per cent for thirty day paper only, the statement that the Board is satisfied to change the BanX rate but desires to call the attention of the Federal at BoSton to the fact that Dallas, Philadelphia, Richmond, Atlanta San Francisco, Chicago, Cleveland, Kansas City and 4 for thirty day paper Si.7,3 , have accepted the new rate of 5, es. for thirty to sixty day paper and 6% for longer maturiti letter The Secretary :;as instructed to prepare a to Mr. J. B. Forgan, President of the Advisory Council, 0— 4 I etatti° what -in reply to the inquiry of the Advisory Council upon 01 ' the Board desired to have the recommendation of the Council, order: the Board desired to take up the following matter in 1. 2. The purchase of warrants and acceptances. The regulations under which National banks may act as trustee, executor, etc. 454, 3. /1„ Time deposits. Check clearins. The reulations under which. tate banks are to be admitted to the 3y3teM. rot ion at 5:30 p. m. the Board adjourned to meet at 3:00 p. m. Th'zrslay, :December 17th. Secretary.
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